BILL NUMBER: AB 505	CHAPTERED  09/30/00

	CHAPTER   1059
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	PASSED THE SENATE   AUGUST 29, 2000
	AMENDED IN SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   AUGUST 8, 2000
	AMENDED IN SENATE   JULY 5, 2000
	AMENDED IN SENATE   JUNE 19, 2000
	AMENDED IN SENATE   JULY 7, 1999
	AMENDED IN ASSEMBLY   MAY 27, 1999
	AMENDED IN ASSEMBLY   MAY 24, 1999
	AMENDED IN ASSEMBLY   MARCH 25, 1999

INTRODUCED BY   Assembly Member Wright
   (Coauthors:  Assembly Members Bates, Briggs, Cardoza, Correa,
Granlund, Leach, Lempert, Lowenthal, Machado, Mazzoni, Vincent, and
Washington)
   (Coauthors:  Senators Costa, Karnette, Rainey, Soto, Speier, and
Vasconcellos)

                        FEBRUARY 18, 1999

   An act to amend Sections 11344.1, 11346.2, 11346.3, 11346.4,
11346.5, and 11346.8 of, to amend and repeal Section 11342 of, to add
Sections 11340.8, 11341, 11345, 11346.45, 11346.7, 11347, 11347.6,
and 11348 to, to add Sections 11342.535 and 11342.595 to, to add
Article 7 (commencing with Section 65054) to Chapter 1.5 of Division
1 of Title 7 of, to add Chapter 3.7 (commencing with Section
15379.50) to Part 6.7 of Division 3 of Title 2 of, to repeal Section
11346.54 of, and to repeal Chapter 11 (commencing with Section 8850)
of Division 1 of Title 2 of, the Government Code, relating to
administrative procedures.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 505, R. Wright.  Administrative procedures.
   (1) The Administrative Procedure Act governs the procedure for the
adoption, amendment, or repeal of regulations by state agencies and
for the review of those regulatory actions by the Office of
Administrative Law.
   This bill, which would be known as the Small Business Regulatory
Reform Act of 2000, would revise various provisions of the act with
respect to the duties of the office and state agencies in the
adoption, amendment, or repeal of regulations, including, among other
things, the following:
   (a) Requiring the office to establish a unique identification
numbering system for each regulatory action for identification and
tracking purposes.
   (b) Requiring the office to post specified information on its
website.
   (c) Authorizing a state agency to extend the time period for
public comment in specified circumstances.
   (d) Revising the information that a state agency is required to
submit with the notice of the proposed action.
   (e) Revising the procedures a state agency must use to make a
determination of whether a proposed administrative regulation or
proposed amendment to an administrative regulation has the potential
for significant, statewide adverse economic impact directly affecting
California business enterprises.
   (f) Revising the notification procedures for notifying interested
persons of the proposed adoption, amendment, or repeal of a
regulation.
   (g) Imposing additional requirements on state agencies issuing
regulations in order to make the regulatory process more user
friendly and improve communications between the parties in the
regulatory process.
   (h) Requiring each state agency to designate at least one person
to serve as a small business liaison.
   (i) Defining "proposed action" and "cost impact" under the
rulemaking provisions of the Administrative Procedure Act.
   (2) Existing law requires that a California Small Business
Advocate be established in the Trade and Commerce Agency and provides
for the appointment of the advocate by the Governor.
   This bill would recodify and recast these provisions to require
that the Office of Small Business Advocate be established in the
Office of Planning and Research in the Governor's office.  The bill
would revise the duties of the California Small Business Advocate,
who is also the director of the Office of Small Business Advocate, to
include counseling small businesses regarding the relationship of
small business to state government.  The bill would also establish a
Governor's Small Business Reform Task Force chaired by the director.
It would require the task force to, among other things, hold
hearings, conduct a study of specified problems of small business,
and report its findings and recommendations to the Governor and the
Legislature on or before May 1, 2002.
   (3) This bill would incorporate additional changes in Sections
11346.2, 11346.5, and 11346.8 of the Government Code proposed by AB
1822, that would become operative if both bills are enacted and
become effective on or before January 1, 2001, and this bill is
enacted last.  This bill would also make the operation of some of its
provisions contingent upon the enactment of AB 1822.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature hereby finds and declares all the
following:
   (1) The existing rulemaking provisions of the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of
Division 3 of Title 2 of the Government Code) and other provisions of
law impact small businesses and small businesses represent 98
percent of all businesses.
   (2) Small businesses do not have the time, staff, and resources to
monitor the state regulatory system and its impact on their
businesses.
   (b) The Legislature further finds that for many regulated
individuals and businesses, the existing Administrative Procedure Act
may be one or more of the following:
   (1) Confusing duplicative, vague, and burdensome.
   (2) Lacking clarity, specificity, and organization that results in
unnecessary work and expense for both state agencies and the
businesses and individuals being impacted by proposed regulations.
   (3) Failing to maximize existing technology to make access to
information easier, quicker, and cheaper for the public.
   (4) Insufficiently protecting and representing the interests of
small businesses.
  SEC. 2.  This act shall be known and may be referred to as the
Small Business Regulatory Reform Act of 2000.
  SEC. 3.  Chapter 11 (commencing with Section 8850) of Division 1 of
Title 2 of the Government Code is repealed.
  SEC. 4.  Section 11340.8 is added to the Government Code, to read:

   11340.8.  In order to make the regulatory process more user
friendly and to improve communication between affected businesses and
the regulatory agencies, each state agency that proposes regulations
pursuant to this chapter shall do all of the following:
   (a) Accept comments from interested parties by facsimile and
electronic mail.
   (b) Post on its Internet website, if the agency has an Internet
website, information regarding the proposed regulation or proposed
regulatory repeal or amendment that includes, but is not limited to,
all of the following:
   (1) Notice of the proposed action.
   (2) Initial statement of reasons for the regulation or proposed
repeal or amendment.
   (3) Text of the proposed regulation or proposed amendment to the
regulation or instructions on how to obtain the text.
   (4) Final statement of reasons.
   (5) If applicable, a dated notice of the intent of the agency to
discontinue the proposed action.
   (6) The office's decisions on the regulation, proposed regulation,
or proposed amendment or repeal of a regulation.
   (7) The date the regulation was filed with the Secretary of State.

   (8) The effective date of the regulation.
   (9) A statement to the effect that a business or person submitting
a comment to a proposed regulation or proposed amendment or repeal
of a regulation has the right to request a copy of the final
statement of reasons.
   (c) Publication under subdivision (b) supplements any other
required form of publication or distribution.  The failure to comply
with this section is not grounds for disapproval of a proposed
regulation.  Subdivision (b) does not require an agency to establish
or maintain a website or other forum for the electronic publication
or distribution of written material.
  SEC. 5.  Section 11341 is added to the Government Code, to read:
   11341.  (a) The office shall establish a system to give a unique
identification number to each regulatory action.
   (b) The office and the state agency taking the regulatory action
shall use the identification number given by the office pursuant to
subdivision (a) to refer to the regulatory action for which a notice
has already been published in the California Regulatory Notice
Register.
   (c) The identification number shall be sufficient information for
a member of the public to identify and track a regulatory action both
with the office and the state agency taking the regulatory action.
No other information pertaining to the regulatory action shall be
required of a member of the public if the identification number of
the regulatory action has been provided.
  SEC. 6.  Section 11342 of the Government Code is amended to read:
   11342.  In this chapter, unless otherwise specifically indicated,
the following definitions apply:
   (a) "Agency" and "state agency" do not include an agency in the
judicial or legislative departments of the state government.
   (b) "Cost impact" means the amount of reasonable range of direct
costs, or a description of the type and extent of direct costs, that
a representative private person or business necessarily incurs in
reasonable compliance with the proposed action.
   (c) "Office" means the Office of Administrative Law.
   (d) "Order of repeal" means any resolution, order or other
official act of a state agency that expressly repeals a regulation in
whole or in part.
   (e) "Performance standard" means a regulation that describes an
objective with the criteria stated for achieving the objective.
   (f) "Plain English" means language that can be interpreted by a
person who has no more than an eighth grade level of proficiency in
English.
   (g) "Prescriptive standard" means a regulation that specifies the
sole means of compliance with a performance standard by specific
actions, measurements, or other quantifiable means.
   (h) "Proposed action" means the regulatory action submitted to the
office for publication in the California Regulatory Notice Register.

   (i) "Regulation" means every rule, regulation, order, or standard
of general application or the amendment, supplement, or revision of
any rule, regulation, order, or standard adopted by any state agency
to implement, interpret, or make specific the law enforced or
administered by it, or to govern its procedure, except one that
relates only to the internal management of the state agency.
"Regulation" does not mean or include legal rulings of counsel issued
by the Franchise Tax Board or State Board of Equalization, or any
form prescribed by a state agency or any instructions relating to the
use of the form, but this provision is not a limitation upon any
requirement that a regulation be adopted pursuant to this part when
one is needed to implement the law under which the form is issued.
   (j) (1) "Small business" means a business activity in agriculture,
general construction, special trade construction, retail trade,
wholesale trade, services, transportation and warehousing,
manufacturing, generation and transmission of electric power, or a
health care facility, unless excluded in paragraph (2), that is both
of the following:
   (A) Independently owned and operated.
   (B) Not dominant in its field of operation.
   (2) "Small business" does not include the following professional
and business activities:
   (A) A financial institution including a bank, a trust, a savings
and loan association, a thrift institution, a consumer finance
company, a commercial finance company, an industrial finance company,
a credit union, a mortgage and investment banker, a securities
broker-dealer, or an investment adviser.
   (B) An insurance company, either stock or mutual.
   (C) A mineral, oil, or gas broker; a subdivider or developer.
   (D) A landscape architect, an architect, or a building designer.
   (E) An entity organized as a nonprofit institution.
   (F) An entertainment activity or production, including a motion
picture, a stage performance, a television or radio station, or a
production company.
   (G) A utility, a water company, or a power transmission company
generating and transmitting more than 4.5 million kilowatthours
annually.
   (H) A petroleum producer, a natural gas producer, a refiner, or a
pipeline.
   (I) A business activity exceeding the following annual gross
receipts in the categories of:
   (i) Agriculture, one million dollars ($1,000,000).
   (ii) General construction, nine million five hundred thousand
dollars ($9,500,000).
   (iii) Special trade construction, five million dollars
($5,000,000).
   (iv) Retail trade, two million dollars ($2,000,000).
   (v) Wholesale trade, nine million five hundred thousand dollars
($9,500,000).
   (vi) Services, two million dollars ($2,000,000).
   (vii) Transportation and warehousing, one million five hundred
thousand dollars ($1,500,000).
   (J) A manufacturing enterprise exceeding 250 employees.
   (K) A health care facility exceeding 150 beds or one million five
hundred thousand dollars ($1,500,000) in annual gross receipts.
  SEC. 6.2.  Section 11342 of the Government Code is repealed.
  SEC. 6.5.  Section 11342.535 is added to the Government Code, to
read:
   11342.535.  "Cost impact" means the amount of reasonable range of
direct costs, or a description of the type and extent of direct
costs, that a representative private person or business necessarily
incurs in reasonable compliance with the proposed action.
  SEC. 6.7.  Section 11342.595 is added to the Government Code, to
read:
   11342.595.  "Proposed action" means the regulatory action
submitted to the office for publication in the California Regulatory
Notice Register.
  SEC. 7.  Section 11344.1 of the Government Code is amended to read:

   11344.1.  The office shall do all of the following:
   (a) Provide for the publication of the California Regulatory
Notice Register, which shall be an official publication of the State
of California and which shall contain the following:
   (1) Notices of proposed action prepared by regulatory agencies,
subject to the notice requirements of this chapter, and which have
been approved by the office.
   (2) A summary of all regulations filed with the Secretary of State
in the previous week.
   (3) Summaries of all regulation decisions issued in the previous
week detailing the reasons for disapproval of a regulation, the
reasons for not filing an emergency regulation, and the reasons for
repealing an emergency regulation.  The California Regulatory Notice
Register shall also include a quarterly index of regulation
decisions.
   (4) Material that is required to be published under Sections
11349.5, 11349.7, and 11349.9.
   (5) Determinations issued pursuant to Section 11340.5.
   (b) Establish the publication dates and manner and form in which
the California Regulatory Notice Register shall be prepared and
published and ensure that it is published and distributed in a timely
manner to the presiding officer and rules committee of each house of
the Legislature and to all subscribers.
   (c) Post on its website, on a weekly basis:
   (1) The California Regulatory Notice Register.  Each issue of the
California Regulatory Notice Register on the office's website shall
remain posted for a minimum of 18 months.
   (2) One or more Internet links to assist the public to gain access
to the text of regulations proposed by state agencies.
  SEC. 8.  Section 11345 is added to the Government Code, to read:
   11345.  The office is not required to develop a unique
identification number system for each regulatory action pursuant to
Section 11341 or to make the California Regulatory Notice Register
available on its website pursuant to subdivision (c) of Section
11344.1 until January 1, 2002.
  SEC. 9.  Section 11346.2 of the Government Code is amended to read:

   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style.  If the
regulation affects small business, the agency shall draft the
regulation in plain English, as defined in subdivision (e) of Section
11342.  However, if it is not feasible to draft the regulation in
plain English due to the technical nature of the regulation, the
agency shall prepare a noncontrolling plain English summary of the
regulation.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation.  This statement of reasons
shall include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal and the rationale for the determination by the
agency that each adoption, amendment, or repeal is reasonably
necessary to carry out the purpose for which it is proposed.  Where
the adoption or amendment of a regulation would mandate the use of
specific technologies or equipment, a statement of the reasons why
the agency believes these mandates or prescriptive standards are
required.
   (2) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (3) (A) A description of reasonable alternatives to the regulation
and the agency's reasons for rejecting those alternatives.  In the
case of a regulation that would mandate the use of specific
technologies or equipment or prescribe specific actions or
procedures, the imposition of performance standards shall be
considered as an alternative.
   (B) A description of any reasonable alternatives the agency has
identified or that have otherwise been identified and brought to the
attention of the agency that would lessen any adverse impact on small
business.  It is not the intent of this paragraph to require the
agency to artificially construct alternatives or to justify why it
has not identified alternatives.
   (4) Facts, evidence, documents, testimony, or other evidence upon
which the agency relies to support a finding that the action will not
have a significant adverse economic impact on business.
   (5) A department, board, or commission within the Environmental
Protection Agency, the Resources Agency, or the Office of the State
Fire Marshal shall describe its efforts, in connection with a
proposed rulemaking action, to avoid unnecessary duplication or
conflicts with federal regulations contained in the Code of Federal
Regulations addressing the same issues.  These agencies may adopt
regulations different from federal regulations contained in the Code
of Federal Regulations addressing the same issues upon a finding of
one or more of the following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5.  However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
  SEC. 9.5.  Section 11346.2 of the Government Code is amended to
read:
   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed  regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style.  The agency
shall draft the regulation in plain English.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
  that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation.  This statement of reasons
shall include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal and the rationale for the determination by the
agency that each adoption, amendment, or repeal is reasonably
necessary to carry out the purpose for which it is proposed.  Where
the adoption or amendment of a regulation would mandate the use of
specific technologies or equipment, a statement of the reasons why
the agency believes these mandates or prescriptive standards are
required.
   (2) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (3) (A) A description of  reasonable alternatives to the
regulation and the agency's reasons for rejecting those alternatives.
  In the case of a regulation that would mandate the use of specific
technologies or equipment or prescribe specific actions or
procedures, the imposition of performance standards shall be
considered as an alternative.
   (B) A description of any reasonable alternatives the agency has
identified or that have otherwise been identified and brought to the
attention of the agency that would lessen any adverse impact on small
business.  It is not the intent of this paragraph to require the
agency to artificially construct alternatives or to justify why it
has not identified alternatives.
   (4) Facts, evidence, documents, testimony, or other evidence on
which the agency relies to support an initial determination that the
action will not have a significant adverse economic impact on
business.
   (5) A department, board, or commission within the Environmental
Protection Agency, the Resources Agency, or the Office of the State
Fire Marshal shall describe its efforts, in connection with a
proposed rulemaking action, to avoid unnecessary duplication or
conflicts with federal regulations contained in the Code of Federal
Regulations addressing the same issues.  These agencies may adopt
regulations different from federal regulations contained in the Code
of Federal Regulations addressing the same issues upon a finding of
one or more of the following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5.  However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
  SEC. 10.  Section 11346.3 of the Government Code is amended to
read:
   11346.3.  (a) State agencies proposing to adopt, amend, or repeal
any administrative regulation shall assess the potential for adverse
economic impact on California business enterprises and individuals,
avoiding the imposition of unnecessary or unreasonable regulations or
reporting, recordkeeping, or compliance requirements.  For purposes
of this subdivision, assessing the potential for adverse economic
impact shall require agencies, when proposing to adopt, amend, or
repeal a regulation, to the extent that these requirements do not
conflict with other state or federal laws:
   (1) The proposed adoption, amendment, or repeal of a regulation
shall be based on adequate information concerning the need for, and
consequences of, proposed governmental action.
   (2) The state agency, prior to submitting a proposal to adopt,
amend, or repeal a regulation to the office, shall consider the
proposal's impact on business, with consideration of industries
affected including the ability of California businesses to compete
with businesses in other states.  For purposes of evaluating the
impact on the ability of California businesses to compete with
businesses in other states, an agency shall consider, but not be
limited to, information supplied by interested parties.
   It is not the intent of this section to impose additional criteria
on agencies, above that which exists in current law, in assessing
adverse economic impact on California business enterprises, but only
to assure that the assessment is made early in the process of
initiation and development of a proposed adoption, amendment, or
repeal of a regulation.
   (b) (1) All state agencies proposing to adopt, amend, or repeal
any administrative regulations shall assess whether and to what
extent it will affect the following:
   (A) The creation or elimination of jobs within the State of
California.
   (B) The creation of new businesses or the elimination of existing
businesses within the State of California.
   (C) The expansion of businesses currently doing business within
the State of California.
   (2) This subdivision does not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
   (3) Information required from state agencies for the purpose of
completing the assessment may come from existing state publications.

   (c) No administrative regulation adopted on or after January 1,
1993, that requires a report shall apply to businesses, unless the
state agency adopting the regulation makes a finding that it is
necessary for the health, safety, or welfare of the people of the
state that the regulation apply to businesses.
  SEC. 11.  Section 11346.4 of the Government Code is amended to
read:
   11346.4.  (a) At least 45 days prior to the hearing and close of
the public comment period on the adoption, amendment, or repeal of a
regulation, notice of the proposed action shall be:
   (1) Mailed to every person who has filed a request for notice of
regulatory actions with the state agency.  Each state agency shall
give a person filing a request for notice of regulatory actions the
option of being notified of all proposed regulatory actions or being
notified of regulatory actions concerning one or more particular
programs of the state agency.
   (2) In cases in which the state agency is within a state
department, mailed or delivered to the director of the department.
   (3) Mailed to a representative number of small business
enterprises or their representatives that are likely to be affected
by the proposed action.  "Representative" for the purposes of this
paragraph includes, but is not limited to, a trade association,
industry association, professional association, or any other business
group or association of any kind that represents a business
enterprise or employees of a business enterprise.
   (4) When appropriate in the judgment of the state agency, mailed
to any person or group of persons whom the agency believes to be
interested in the proposed action and published in the form and
manner as the state agency shall prescribe.
   (5) Published in the California Regulatory Notice Register as
prepared by the office for each state agency's notice of regulatory
action.
   (6) Posted on the state agency's website if the agency has a
website.
   (b) The effective period of a notice issued pursuant to this
section shall not exceed one year from the date thereof.  If the
adoption, amendment, or repeal of a regulation proposed in the notice
is not completed and transmitted to the office within the period of
one year, a notice of the proposed action shall again be issued
pursuant to this article.
   (c) Once the adoption, amendment, or repeal is completed and
approved by the office, no further adoption, amendment, or repeal to
the noticed regulation shall be made without subsequent notice being
given.
   (d) The office may refuse to publish a notice submitted to it if
the agency has failed to comply with this article.
   (e) The office shall make the California Regulatory Notice
Register available to the public and state agencies at a nominal cost
that is consistent with a policy of encouraging the widest possible
notice distribution to interested persons.
   (f) Where the form or manner of notice is prescribed by statute in
any particular case, in addition to filing and mailing notice as
required by this section, the notice shall be published, posted,
mailed, filed, or otherwise publicized as prescribed by that statute.
  The failure to mail notice to any person as provided in this
section shall not invalidate any action taken by a state agency
pursuant to this article.
  SEC. 12.  Section 11346.45 is added to the Government Code, to
read:
   11346.45.  (a) In order to increase public participation and
improve the quality of regulations, state agencies proposing to adopt
regulations shall, prior to publication of the notice required by
Section 11346.5, involve parties who would be subject to the proposed
regulations in public discussions regarding those proposed
regulations, when the proposed regulations involve complex proposals
or a large number of proposals that cannot easily be reviewed during
the comment period.
                                               (b) This section does
not apply to a state agency in any instance where that state agency
is required to implement federal law and regulations for which there
is little or no discretion on the part of the state to vary.
   (c) If the agency does not or cannot comply with the provisions of
subdivision (a), it shall state the reasons for noncompliance with
reasonable specificity in the rulemaking record.
   (d) The provisions of this section shall not be subject to
judicial review or to the provisions of Section 11349.1.
  SEC. 13.  Section 11346.5 of the Government Code is amended to
read:
   11346.5.  (a) The notice of proposed adoption, amendment, or
repeal of a regulation shall include the following:
   (1) A statement of the time, place, and nature of proceedings for
adoption, amendment, or repeal of the regulation.
   (2) Reference to the authority under which the regulation is
proposed and a reference to the particular code sections or other
provisions of law that are being implemented, interpreted, or made
specific.
   (3) An informative digest containing a concise and clear summary
of existing laws and regulations, if any, related directly to the
proposed action and the effect of the proposed action.  The
informative digest shall be drafted in a format similar to the
Legislative Counsel's digest on legislative bills.
   (A) If the proposed action differs substantially from an existing
comparable federal regulation or statute, the informative digest
shall also include a brief description of the significant differences
and the full citation of the federal regulations or statutes.
   (B) If the proposed action affects small business, the informative
digest shall also include a plain English policy statement overview
explaining the broad objectives of the regulation and, if
appropriate, the specific objectives.
   (4) Any other matters as are prescribed by statute applicable to
the specific state agency or to any specific regulation or class of
regulations.
   (5) A determination as to whether the regulation imposes a mandate
on local agencies or school districts and, if so, whether the
mandate requires state reimbursement pursuant to Part 7 (commencing
with Section 17500) of Division 4.
   (6) An estimate, prepared in accordance with instructions adopted
by the Department of Finance, of the cost or savings to any state
agency, the cost to any local agency or school district that is
required to be reimbursed under Part 7 (commencing with Section
17500) of Division 4, other nondiscretionary cost or savings imposed
on local agencies, and the cost or savings in federal funding to the
state.
   For purposes of this paragraph, "cost or savings" means additional
costs or savings, both direct and indirect, that a public agency
necessarily incurs in reasonable compliance with regulations.
   (7) If a state agency, in proposing to adopt or amend any
administrative regulation, determines that the action may have a
significant, statewide adverse economic impact directly affecting
business, including the ability of California businesses to compete
with businesses in other states, it shall include the following
information in the notice of proposed action:
   (A) Identification of the types of businesses that would be
affected.
   (B) A description of the projected reporting, recordkeeping, and
other compliance requirements that would result from the proposed
action.
   (C) The following statement:  "The (name of agency) finds that the
(adoption/amendment) of this regulation may have a significant
adverse economic impact on businesses, including the ability of
California businesses to compete with businesses in other states.
The (name of agency) (has/has not) considered proposed alternatives
that would lessen any adverse economic impact on business and invites
you to submit proposals.  Submissions may include the following
considerations:
   (i) The establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to businesses.
   (ii) Consolidation or simplification of compliance and reporting
requirements for businesses.
   (iii) The use of performance standards rather than prescriptive
standards.
   (iv) Exemption or partial exemption from the regulatory
requirements for businesses."
   (8) If a state agency, in adopting or amending any administrative
regulation, determines that the action will not have a significant,
statewide adverse economic impact directly affecting business,
including the ability of California businesses to compete with
businesses in other states, it shall make a declaration to that
effect in the notice of proposed action.  In making this
determination, the agency shall provide in the record facts,
evidence, documents, testimony, or other evidence upon which the
agency relies to support that finding.
   An agency's determination and declaration that a proposed
regulation may have or will not have a significant, adverse impact on
businesses, including the ability of California businesses to
compete with businesses in other states, shall not be grounds for the
office to refuse to publish the notice of proposed action.
   (9) A description of all cost impacts, known to the agency at the
time the notice of proposed action is submitted to the office, that a
representative private person or business would necessarily incur in
reasonable compliance with the proposed action.
   If no cost impacts are known to the agency, it shall state the
following:
   "The agency is not aware of any cost impacts that a representative
private person or business would necessarily incur in reasonable
compliance with the proposed action."
   (10) A statement of the results of the assessment required by
subdivision (b) of Section 11346.3.
   (11) A statement that the action would have a significant effect
on housing costs, if a state agency, in adopting, amending, or
repealing any administrative regulation, determines that the action
would have an effect.  In addition, the agency officer designated in
paragraph (13), shall make available to the public, upon request, the
agency's evaluation, if any, of the effect of the proposed
regulatory action on housing costs.
   (12) A statement that the adopting agency must determine that no
reasonable alternative considered by the agency or that has otherwise
been identified and brought to the attention of the agency would be
more effective in carrying out the purpose for which the action is
proposed or would be as effective and less burdensome to affected
private persons than the proposed action.
   (13) The name and telephone number of the following:
   (A) The agency representative and designated backup contact person
to whom inquiries concerning the proposed administrative action may
be directed.
   (B) An agency person or persons designated to respond to questions
on the substance of the proposed regulations, where appropriate.
   (14) The date by which comments submitted in writing must be
received to present statements, arguments, or contentions in writing
relating to the proposed action in order for them to be considered by
the state agency before it adopts, amends, or repeals a regulation.

   (15) Reference to the fact that the agency proposing the action
has prepared a statement of the reasons for the proposed action, has
available all the information upon which its proposal is based, and
has available the express terms of the proposed action, pursuant to
subdivision (b).
   (16) A statement that if a public hearing is not scheduled, any
interested person or his or her duly authorized representative may
request, no later than 15 days prior to the close of the written
comment period, a public hearing pursuant to Section 11346.8.
   (17) A statement indicating that the full text of a regulation
changed pursuant to Section 11346.8 will be available for at least 15
days prior to the date on which the agency adopts, amends, or
repeals the resulting regulation.
   (b) The agency representative designated in paragraph (13) of
subdivision (a) shall make available to the public upon request the
express terms of the proposed action.  The representative shall also
make available to the public upon request the location of public
records, including reports, documentation, and other materials,
related to the proposed action.
   (c) This section shall not be construed in any manner that results
in the invalidation of a regulation because of the alleged
inadequacy of the notice content or the summary or cost estimates, or
the alleged inadequacy or inaccuracy of the housing cost estimates,
if there has been substantial compliance with those requirements.
  SEC. 13.5.  Section 11346.5 of the Government Code is amended to
read:
   11346.5.  (a) The notice of proposed adoption, amendment, or
repeal of a regulation shall include the following:
   (1) A statement of the time, place, and nature of proceedings for
adoption, amendment, or repeal of the regulation.
   (2) Reference to the authority under which the regulation is
proposed and a reference to the particular code sections or other
provisions of law that are being implemented, interpreted, or made
specific.
   (3) An informative digest drafted in plain English in a format
similar to the Legislative Counsel's digest on legislative bills.
The informative digest shall include the following:
   (A) A  concise and clear summary of existing laws and regulations,
if any, related directly to the proposed action and of the effect of
the proposed action.
   (B) If the proposed action differs substantially from an existing
comparable federal regulation or statute, a brief description of the
significant differences and the full citation of the federal
regulations or statutes.
   (C) A policy statement overview explaining the broad objectives of
the regulation and, if appropriate, the specific objectives.
   (4) Any other matters as are prescribed by statute applicable to
the specific state agency or to any specific regulation or class of
regulations.
   (5) A determination as to whether the regulation imposes a mandate
on local agencies or school districts and, if so, whether the
mandate requires state reimbursement pursuant to Part 7 (commencing
with Section 17500) of Division 4.
   (6) An estimate, prepared in accordance with instructions adopted
by the Department of Finance, of the cost or savings to any state
agency, the cost to any local agency or school district that is
required to be reimbursed under Part 7 (commencing with Section
17500) of Division 4, other nondiscretionary cost or savings imposed
on local agencies, and the cost or savings in federal funding to the
state.
   For purposes of this  paragraph, "cost or savings" means
additional costs or savings, both direct and indirect, that a public
agency necessarily incurs in reasonable compliance with regulations.

   (7) If a state agency, in proposing to adopt , amend,  or repeal
any administrative regulation, makes an initial determination that
the action may have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states, it shall
include the following information in the notice of proposed action:
   (A) Identification of the types of businesses that would be
affected.
   (B) A description of the projected reporting, recordkeeping, and
other compliance requirements that would result from the proposed
action.
   (C) The following statement:  "The (name of agency)  has made an
initial determination that the (adoption/amendment/repeal) of this
regulation may have a significant adverse economic impact on
businesses, including the ability of California businesses to compete
with businesses in other states.  The (name of agency) (has/has not)
considered proposed alternatives that would lessen any adverse
economic impact on business and invites you to submit proposals.
Submissions may include the following considerations:
   (i) The establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to businesses.
   (ii) Consolidation or simplification of compliance and reporting
requirements for businesses.
   (iii) The use of performance standards rather than prescriptive
standards.
   (iv) Exemption or partial exemption from the regulatory
requirements for businesses."
   (8) If a state agency, in adopting , amending, or repealing any
administrative regulation, makes an initial determination that the
action will not have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states, it shall make
a declaration to that effect in the notice of proposed action.  In
making this declaration, the agency shall provide in the record
facts, evidence, documents, testimony, or other evidence upon which
the agency relies to support  its initial determination.
   An agency's initial determination and declaration that a proposed
adoption, amendment, or repeal of a regulation may have or will not
have a significant, adverse impact on businesses, including the
ability of California businesses to compete with businesses in other
states, shall not be grounds for the office to refuse to publish the
notice of proposed action.
   (9) A description of all cost impacts, known to the agency at the
time the notice of proposed action is submitted to the office, that a
representative private person or business would necessarily  incur
in reasonable compliance with the proposed action.
   If no cost impacts are known to the agency, it shall state the
following:
   "The agency is not aware of any cost impacts that a representative
private person or business would necessarily incur in reasonable
compliance with the proposed action."
   (10) A statement of the results of the assessment required by
subdivision (b) of Section 11346.3.
   (11) The finding prescribed by subdivision (c) of Section 11346.3,
if required.
   (12) A statement that the action would have a significant effect
on housing costs, if a state agency, in adopting, amending, or
repealing any administrative regulation,  makes an initial
determination that the action would have that effect.  In addition,
the agency officer designated in paragraph  (14), shall make
available to the public, upon request, the agency's evaluation, if
any, of the effect of the proposed regulatory action on housing
costs.
   (13) A statement that the adopting agency must determine that no
reasonable alternative considered by the agency or that has otherwise
been identified and brought to the attention of the agency would be
more effective in carrying out the purpose for which the action is
proposed or would be as effective and less burdensome to affected
private persons than the proposed action.
   (14) The name and telephone number of the following:
   (A) The agency representative and designated backup contact person
to whom inquiries concerning the proposed administrative action may
be directed.
   (B) An agency person or persons designated to respond to questions
on the substance of the proposed regulations, where appropriate.
   (15) The date by which comments submitted in writing must be
received to present statements, arguments, or contentions in writing
relating to the proposed action in order for them to be considered by
the state agency before it adopts, amends, or repeals a regulation.

   (16) Reference to the fact that the agency proposing the action
has prepared a statement of the reasons for the proposed action, has
available all the information upon which its proposal is based, and
has available the express terms of the proposed action, pursuant to
subdivision (b).
   (17) A statement that if a public hearing is not scheduled, any
interested person or his or her duly authorized representative may
request, no later than 15 days prior to the close of the written
comment period, a public hearing pursuant to Section 11346.8.
   (18) A statement indicating that the full text of a regulation
changed pursuant to Section 11346.8 will be available for at least 15
days prior to the date on which the agency adopts, amends, or
repeals the resulting regulation.
   (19) A statement explaining how to obtain a copy of the final
statement of reasons once it has been prepared pursuant to
subdivision (a) of Section 11346.9.
   (20) If the agency maintains an Internet website or other similar
forum for the electronic publication or distribution of written
material, a statement explaining how materials published or
distributed through that forum can be accessed.
   (b) The agency  representative designated in paragraph  (14) of
subdivision (a) shall make available to the public upon request the
express terms of the proposed action.  The representative shall also
make available to the public upon request the location of public
records, including reports, documentation, and other materials,
related to the proposed action.
   (c) This section shall not be construed in any manner that results
in the invalidation of a regulation because of the alleged
inadequacy of the notice content or the summary or cost estimates, or
the alleged inadequacy or inaccuracy of the housing cost estimates,
if there has been substantial compliance with those requirements.
  SEC. 14.  Section 11346.54 of the Government Code is repealed.
  SEC. 15.  Section 11346.7 is added to the Government Code, to read:

   11346.7.  The office shall maintain a link on its website to the
website maintained by the Small Business Advocate that also includes
the telephone number of the Small Business Advocate.
  SEC. 16.  Section 11346.8 of the Government Code is amended to
read:
   11346.8.  (a) If a public hearing is held, statements, arguments,
or contentions, either oral or in writing, or both, shall be
permitted.  If a public hearing is not scheduled, the state agency
shall, consistent with Section 11346.4, afford any interested person
or his or her duly authorized representative, the opportunity to
present statements, arguments or contentions in writing.  In
addition, a public hearing shall be held if, no later than 15 days
prior to the close of the written comment period, an interested
person or his or her duly authorized representative submits in
writing to the state agency, a request to hold a public hearing.  The
state agency shall, to the extent practicable, provide notice of the
time, date, and place of the hearing by mailing the notice to every
person who has filed a request for notice thereby with the state
agency.  The state agency shall consider all relevant matter
presented to it before adopting, amending, or repealing any
regulation.
   (b) In any hearing under this section, the state agency or its
duly authorized representative shall have authority to administer
oaths or affirmations.  An agency may continue or postpone a hearing
from time to time to the time and at the place as it determines.  If
a hearing is continued or postponed, the state agency shall provide
notice to the public as to when it will be resumed or rescheduled.
   (c) No state agency may adopt, amend, or repeal a regulation which
has been changed from that which was originally made available to
the public pursuant to Section 11346.5, unless the change is (1)
nonsubstantial or solely grammatical in nature, or (2) sufficiently
related to the original text that the public was adequately placed on
notice that the change could result from the originally proposed
regulatory action.  If a sufficiently related change is made, the
full text of the resulting adoption, amendment, or repeal, with the
change clearly indicated, shall be made available to the public for
at least 15 days before the agency adopts, amends, or repeals the
resulting regulation.  Any written comments received regarding the
change must be responded to in the final statement of reasons
required by Section 11346.9.
   (d) No state agency shall add any material to the record of the
rulemaking proceeding after the close of the public hearing or
comment period, unless adequate provision is made for public comment
on that matter.
   (e) If a comment made at a public hearing raises a new issue
concerning a proposed regulation and a member of the public requests
additional time to respond to the new issue before the state agency
takes final action, it is the intent of the Legislature that
rulemaking agencies consider granting the request for additional time
if, under the circumstances, granting the request is practical and
does not unduly delay action on the regulation.
  SEC. 16.5.  Section 11346.8 of the Government Code is amended to
read:
   11346.8.  (a) If a public hearing is held, both oral and written
statements, arguments, or contentions, shall be permitted.  The
agency may impose reasonable limitations on oral presentations.  If a
public hearing is not scheduled, the state agency shall, consistent
with Section 11346.4, afford any interested person or his or her duly
authorized representative, the opportunity to present statements,
arguments or contentions in writing.  In addition, a public hearing
shall be held if, no later than 15 days prior to the close of the
written comment period, an interested person or his or her duly
authorized representative submits in writing to the state agency, a
request to hold a public hearing.  The state agency shall, to the
extent practicable, provide notice of the time, date, and place of
the hearing by mailing the notice to every person who has filed a
request for notice thereby with the state agency.  The state agency
shall consider all relevant matter presented to it before adopting,
amending, or repealing any regulation.
   (b) In any hearing under this section, the state agency or its
duly authorized representative shall have authority to administer
oaths or affirmations.  An agency may continue or postpone a hearing
from time to time to the time and at the place as it determines.  If
a hearing is continued or postponed, the state agency shall provide
notice to the public as to when it will be resumed or rescheduled.
   (c) No state agency may adopt, amend, or repeal a regulation which
has been changed from that which was originally made available to
the public pursuant to Section 11346.5, unless the change is (1)
nonsubstantial or solely grammatical in nature, or (2) sufficiently
related to the original text that the public was adequately placed on
notice that the change could result from the originally proposed
regulatory action.  If a sufficiently related change is made, the
full text of the resulting adoption, amendment, or repeal, with the
change clearly indicated, shall be made available to the public for
at least 15 days before the agency adopts, amends, or repeals the
resulting regulation.  Any written comments received regarding the
change must be responded to in the final statement of reasons
required by Section 11346.9.
   (d) No state agency shall add any material to the record of the
rulemaking proceeding after the close of the public hearing or
comment period, unless the agency complies with Section 11347.1.
This subdivision does not apply to material prepared pursuant to
Section 11346.9.
   (e) If a comment made at a public hearing raises a new issue
concerning a proposed regulation and a member of the public requests
additional time to respond to the new issue before the state agency
takes final action, it is the intent of the Legislature that
rulemaking agencies consider granting the request for additional time
if, under the circumstances, granting the request is practical and
does not unduly delay action on the regulation.
  SEC. 17.  Section 11347 is added to the Government Code, to read:
   11347.  (a) If, after publication of a notice of proposed action
pursuant to Section 11346.4, but before the notice of proposed action
becomes ineffective pursuant to subdivision (b) of that section, an
agency decides not to proceed with the proposed action, it shall
deliver notice of its decision to the office for publication in the
California Regulatory Notice Register.
   (b) Publication of a notice under this section terminates the
effect of the notice of proposed action referred to in the notice.
Nothing in this section precludes an agency from proposing a new
regulatory action that is similar or identical to a regulatory action
that was previously the subject of a notice published under this
section.
  SEC. 18.  Section 11347.6 is added to the Government Code, to read:

   11347.6.  Each state agency that adopts regulations shall, in the
final statement of reasons, separately identify comments made by the
Office of Small Business Advocate and the Trade and Commerce Agency
pursuant to subdivision (e) of Section 15363.6 and respond to each
and every comment made by that office or agency directed at the
proposed action or at the procedures followed by the agency in
proposing or adopting the action, including providing a basis for why
those comments were rejected, if applicable.
  SEC. 19.  Section 11348 is added to the Government Code, to read:
   11348.  Each agency subject to this chapter shall keep its
rulemaking records on all of that agency's pending rulemaking
actions, in which the notice has been published in the California
Regulatory Notice Register, current and in one central location.
  SEC. 20.  Chapter 3.7 (commencing with Section 15379.50) is added
to Part 6.7 of Division 3 of Title 2 of the Government Code, to read:


      CHAPTER 3.7.  SMALL BUSINESS LIAISON

   15379.50.  (a) Each state agency that significantly regulates
small business or that significantly impacts small business shall
designate at least one person who shall serve as a small business
liaison.  The agency shall utilize existing personnel and resources
to perform the duties of small business liaison.
   (b) Each state agency that significantly regulates small business
or that significantly impacts small business shall widely publicize
the position of small business liaison in appropriate agency
publications and on the agency's website if the agency has a website.

   (c) The small business liaison shall be responsible for all of the
following:
   (1) Receiving and responding to complaints received by the agency
from small businesses.
   (2) Providing technical advice and assisting small businesses in
resolving problems and questions.
   (3) Reporting small business concerns and, where appropriate,
reporting recommendations to the agency secretary or to the agency
head, as defined in Section 11405.50.
                         (d) The small business liaison shall not
advocate for or against the adoption, amendment, or repeal of any
regulation or intervene in any pending investigation or enforcement
action.
  SEC. 21.  Article 7 (commencing with Section 65054) is added to
Chapter 1.5 of Division 1 of Title 7 of the Government Code, to read:


      Article 7.  California Small Business Advocate

   65054.  (a) The Legislature finds and declares that it is in the
public interest to aid, counsel, assist, and protect, insofar as is
possible, the interests of small business concerns in order to
preserve free competitive enterprise and maintain a healthy state
economy.
   (b) In order to advocate the causes of small business and to
provide small businesses with the information they need to survive in
the marketplace, there is created within the Office of Planning and
Research the Office of Small Business Advocate.
   (c) Post on its Internet website the name and telephone number of
the small business liaison designated pursuant to Chapter 3.7
(commencing with Section 15379.50) of Part 6.7.
   65054.1.  The following definitions apply to Sections 15334.5 to
15334.8, inclusive, unless otherwise indicated:
   (a) "Advocate" means the California Small Business Advocate who is
also the Director of the Office of Small Business Advocate.
   (b) "Director" means the Director of the Office of Small Business
Advocate.
   (c) "Office" means the Office of Small Business Advocate.
   65054.3.  (a) The Director of the Office of Small Business
Advocate shall be appointed by, and shall serve at the pleasure of,
the Governor.
   (b) The Governor shall appoint the employees that are needed to
accomplish the purposes of Section 65054, this section, and Section
65054.4.
   (c) The duties and functions of the advocate shall include all of
the following:
   (1) Serve as the principal advocate in the state on behalf of
small businesses, including, but not limited to, advisory
participation in the consideration of all legislation and
administrative regulations which affect small businesses.
   (2) Represent the views and interests of small businesses before
other state agencies whose policies and activities may affect small
business.
   (3) Enlist the cooperation and assistance of public and private
agencies, businesses, and other organizations in disseminating
information about the programs and services provided by state
government which are of benefit to small businesses, and information
on how small businesses can participate in, or make use of, those
programs and services.
   (4) Issue a report every two years evaluating the efforts of state
agencies and, where appropriate, specific departments that
significantly regulate small businesses to assist minority and other
small business enterprises, and making recommendations that may be
appropriate to assist the development and strengthening of minority
and other small business enterprises.
   (5) Consult with experts and authorities in the fields of small
business investment, venture capital investment, and commercial
banking and other comparable financial institutions involved in the
financing of business, and with individuals with regulatory, legal,
economic, or financial expertise, including members of the academic
community, and individuals who generally represent the public
interest.
   (6) Determine the desirability of developing a set of rational,
objective criteria to be used to define small business, and to
develop that criteria, if appropriate.
   (7) Seek the assistance and cooperation of all state agencies and
departments providing services to, or affecting, small business,
including the small business liaison designated pursuant to Section
15379.50, to ensure coordination of state efforts.
   (8) Receive and respond to complaints from small businesses
concerning the actions of state agencies and the operative effects of
state laws and regulations adversely affecting those businesses.
   (9) Counsel small businesses on how to resolve questions and
problems concerning the relationship of small business to state
government.
   (10) Maintain, publicize, and distribute an annual list of persons
serving as small business ombudsmen throughout state government.
   65054.4.  (a) Each agency of the state shall furnish to the
advocate the reports, documents, and information that are public
records and that the director deems necessary to carry out his or her
functions under this chapter.
   (b) The advocate shall prepare and submit a written annual report
to the Governor and to the Legislature that describes the activities
and recommendations of the office.
   (c) The advocate may establish a centralized interactive telephone
referral system to assist small and minority businesses in their
operations, including governmental requirements, such as taxation,
accounting, and pollution control, and to provide information
concerning the agency from which more specialized assistance may be
obtained.  The advocate may establish and advertise a telephone
number to serve this centralized interactive telephone referral
system.
   65054.5.  (a) There is hereby created a Governor's Small Business
Reform Task Force.  The task force shall be chaired by the Director
of the Office of Small Business Advocate and shall include
representatives appointed by the Governor from the California Small
Business Association, other small business associations, and agency
secretaries or their designees from state agencies heavily involved
in small business regulation.
   (b) The task force shall identify problems and ideas from the
small business community concerning the regulation, communication,
and assistance of state government with small business.  The task
force shall create a website to solicit public input, as well as,
conduct at least four public hearings around the state to seek advice
and recommendations.
   (c) The task force shall conduct a study to consider the problems
encountered by small businesses working with different levels of
government, different offices in state and local government, and
multiple jurisdictions, especially in the context of applying for and
obtaining required permits and licenses.  The study may include
participation by the California League of Cities, county boards of
supervisors, and small business representatives.
   (d) The task force shall prepare and submit a report on or before
May 1, 2002, to the Governor and the budget committee of each house
of the Legislature with a discussion of its findings and
recommendations.
  SEC. 22.  Sections 6.2, 6.5, and 6.7 of this bill shall become
operative only if AB 1822 is enacted and becomes effective on or
before January 1, 2001, in which case Section 6 of this bill shall
not become operative.
  SEC. 23.  Section 9.5 of this bill incorporates amendments to
Section 11346.2 of the Government Code proposed by both this bill and
AB 1822.  It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2001, (2) each
bill amends Section 11346.2 of the Government Code, and (3) this bill
is enacted after AB 1822, in which case Section 9 of this bill shall
not become operative.
  SEC. 24.  Section 13.5 of this bill incorporates amendments to
Section 11346.5 of the Government Code proposed by both this bill and
AB 1822.  It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2001, (2) each
bill amends Section 11346.5 of the Government Code, and (3) this bill
is enacted after AB 1822, in which case Section 13 of this bill
shall not become operative.
  SEC. 25.  Section 16.5 of this bill incorporates amendments to
Section 11346.8 of the Government Code proposed by both this bill and
AB 1822.  It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2001, (2) each
bill amends Section 11346.8 of the Government Code, and (3) this bill
is enacted after AB 1822, in which case Section 16 of this bill
shall not become operative.
